An investor places $9,700.00 in an account that pays 8.00% per year. The investor is interested in the account balanceover the next few years. Specifically, he wants to know the balance for the following milestones:MILESTONE:MILESTONE 1:MILESTONE 2:MILESTONE 3:Years3.00 years7.00 years11.00 yearsWhat is the balance after Milestone 1?SubmitAnswer format: Currency: Round to: 2 decimal places.Show HintAn investor places $9,700.00 in an account that pays.8.00% per year. The investor is interested in the account balanceover the next few years. Specifically, he wants to know the balance for the following milestones:MILESTONE:MILESTONE 1:MILESTONE 2:MILESTONE 3:What is the balance after Milestone 2?SubmitAnswer format: Currency: Round to: 2 decimal places.Years3.00 years7.00 years11.00 years

Step 1: Understanding the Compound Interest FormulaWe are using the compound interest formula, which…

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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Suppose you deposit $1,016.00 into an account 4.00 years from today. Exactly 13.00 years from today the account is worth $1,741.00. What was the account's interest rate? Submit Answer format: Percentage Round to 3 decimal places (Example: 9.243%, % sign required. Will accept decimal format rounded to 5 decimal places (ex. 0.09243))
What is the value today of a money machine that will pay $4,500.00 every six months for 16.00 years? Assume the first payment is made 5.00 years from today and the interest rate is 6.00%. Answer Format: Currency: Round to: 2 decimal places. Please solve on financial; calculator
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The balance of an interest-bearing account can be modeled by an exponential equation. For example, consider an initial deposit of $10000 at an annual interest rate of 5%. The interest earned each year is deposited into the account at the end of the year. A. Assuming that no withdrawals or deposits are made, write an equation that models the account balance after x years. Your answer B. What is the account balance at the end of the 7 years? Your answer C. Create a graph that shows the increase in the account balance over the next 15 years, including your initial deposit. Your answer D. Using the graph, estimate how many years it will take for the initial deposit to double. Your answer E. If you deposited $5000O in an account of this type, what would the account balance be when you are 50 years old assuming that you are 20 years of age right now? Your answer OCT 16
The total amount of money in an account with P dollars invested in it is given by the formula A=P+PrtA=P+Prt, where r is the rate expressed as a decimal and t is time (in years).If $525$⁢525 is invested at 14%14%, how much money will be in the account after 3030 months? Round your answer to two decimal places if necessary.
You invest $ 500 today and receive $ 750 at the end of 5 years. a. DETERMINE the internal rate of return, using hand interpolation. Write answer to 2 decimal places. b. SUBMIT the procedures via the spreadsheet icon. Show all your computations. -
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Tab Window Hélp sponse The balance of an interest-bearing account can be modeled by an exponential equation. For example, consider an initial deposit of $2000 at an annual interest rate of 6%. The interest earned each year is deposited into the account at the end of the year. A. Assuming that no withdrawals or deposits are made, write an equation that models the account balance after x years. Your answer B. What is the account balance at the end of the 10 years? Your answer C. Create a graph that shows the increase in the account balance over the next 20 years, including your initial deposit. Your answer D. Using the graph, estimate how many years it will take for the initial deposit to double. Your answer E. If you deposited $2000 in an account of this type, what would the account balance be when you are 45 years old assuming that you are 18 years of age right now?
You initially invest $400 in a savings account that pays a yearly interest rate of 3%. (a) Write a formula for an exponential function giving the balance in your account as a function of the time since your initial investment. (Let B be the account balance in dollars and t be the number of years since the initial investment.) 8(t)= dollars (b) What monthly interest rate best represents this account? Round your answer to three decimal places. % (c) Calculate the decade growth factor. (Round your answer to two decimal places.) (d) Use the formula you found in part (a) to determine how long it will take for the account to reach $536. (Round your answer to the nearest whole number.) yr Explain how this is consistent with your answer to part (c), At the end of one decade, there will be $ where the account reaches $536 at the end of This --Select-- o the answer found above years,
If you deposit $P into a savings account that earns interest at a rate of i% per month for n years, the future worth in year n is represented by all of the following equations, except: (a) F = $P(F∕P, effective i/month, 12n) (b) F = $P(F∕P, effective i/quarter, 3n) (c) F = $P(F∕P, effective i/6-month, 2n) (d) F = $P(F∕P, effective i/year, n)

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